Clarcor 3Q net up 13 pct but misses estimates

Friday, September 9, 2011, Vol. 35, No. 36

FRANKLIN (AP) — Clarcor Inc., which makes filters for homes, factories and automobiles, posted a 13 percent gain in third-quarter profit Wednesday as it benefited from new products and international expansion.

The results nonetheless fell short of analysts' expectations amid slower sales in China. Its shares tumbled in after-hours trading.

Net income for the three months ended Aug. 27 was $32.1 million, or 63 cents per share, up from $28.3 million, or 55 cents a share, in the same period a year earlier.

Revenue was $284.8 million, up 8 percent from $262.8 million.

Analysts surveyed by FactSet were expecting earnings of 66 cents a share on revenue of $295.3 million.

CEO Norm Johnson said sales of the company's heavy-duty engine filters in China slowed during the quarter because of softer demand. He said the company still expects sales of the product to achieve the original target of 30 percent growth for the full year.

Clarcor maintained its full-year earnings guidance of $2.25 to $2.40 per share. Johnson said the company expects to be in the upper end of that range if there are no major economic disruptions in the fourth quarter.

Shares of Clarcor fell $3.84, or 8.4 percent, in extended trading following the announcement. They closed the regular session up 46 cents, or 1 percent, to $45.84.